H.B. 3

1

STATE BUILDINGS - PREVENTIVE MAINTENANCE
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Gerry A. Adair
5 AN ACT RELATING TO DIVISION OF FACILITIES CONSTRUCTION AND
6 MANAGEMENT; MODIFYING THE SCOPE AND APPLICATION OF CERTAIN
7 PREVENTIVE MAINTENANCE REQUIREMENTS; MODIFYING REPORTING
8 REQUIREMENTS; MODIFYING PRIORITIZATION CRITERIA; AND MAKING
9 TECHNICAL CORRECTIONS.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 63-38c-103, as renumbered and amended by Chapters 275 and 279, Laws of Utah 1996
13 63A-5-103, as last amended by Chapter 54, Laws of Utah 1995
14 63A-5-204, as last amended by Chapters 79 and 159, Laws of Utah 1996
15 ENACTS:
16 63A-5-104, Utah Code Annotated 1953
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 63-38c-103 is amended to read:
19 63-38c-103. Definitions.
20 As used in this chapter:
21 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
22 from unrestricted General Fund, Uniform School Fund, and Transportation Fund sources as
23 presented in the governor's executive budgets.
24 (b) "Appropriation" includes appropriations that are contingent upon available surpluses
25 in the General Fund, Uniform School Fund, or Transportation Fund.
26 (c) "Appropriations" does not mean:
27 (i) debt service expenditures;

1 (ii) emergency expenditures;
2 (iii) expenditures from all other fund or subfund sources presented in the executive
3 budgets;
4 (iv) transfers into, or appropriations made to, the Budgetary Reserve Account established
5 in Section 63-38-2.5;
6 (v) monies appropriated to fund the total one-time project costs for the construction of
7 capital developments as defined in [Subsection 63A-5-103(4)] Section 63A-5-104; or
8 (vi) appropriations made to the Centennial Highway Trust Fund created by Section
9 63-49-22.
10 (2) "Base year real per capita appropriations" means the result obtained for the state by
11 dividing the fiscal year 1985 actual appropriations of the state less debt monies, less $55 million
12 appropriated for flooding and less $14.2 million appropriated for capital projects in Section 3 of
13 Chapter 265, Laws of Utah 1985 General Session, by:
14 (a) the state's July 1, 1983 population; and
15 (b) the fiscal year 1983 inflation index divided by 100.
16 (3) "Calendar year" means the time period beginning on January 1 of any given year and
17 ending on December 31 of the same year.
18 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
19 expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special
20 Session.
21 (5) "Fiscal year" means the time period beginning on July 1 of any given year and ending
22 on June 30 of the subsequent year.
23 [(15)] (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
24 capital and operations appropriations from general, uniform school, and transportation fund
25 sources, less debt monies, less $55 million appropriated for flooding, and less $14.2 million
26 appropriated for capital projects in Section 3, Chapter 265, Laws of Utah 1985.
27 [(6)] (7) "Inflation index" means the change in the general price level of goods and
28 services as measured by the Gross National Product Implicit Price Deflator of the Bureau of
29 Economic Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202.
30 [(7)] (8) (a) "Maximum allowable appropriations limit" means the appropriations that
31 could be, or could have been, spent in any given year under the limitations of this chapter.

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1 (b) "Maximum allowable appropriations limit" does not mean actual appropriations spent
2 or actual expenditures.
3 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
4 fiscal years previous to the fiscal year for which the maximum allowable inflation and population
5 appropriations limit is being computed under this chapter.
6 [(14)] (10) "Most recent fiscal year's personal income" means the fiscal year personal
7 income two fiscal years previous to the fiscal year for which the maximum allowable personal
8 income appropriations limit is being computed under this chapter.
9 [(8)] (11) "Most recent fiscal year's population" means the fiscal year population two fiscal
10 years previous to the fiscal year for which the maximum allowable inflation and population
11 appropriations limit is being computed under this chapter.
12 [(13)] (12) "Personal income" means the total personal income of the state as calculated
13 by the Office of Planning and Budget according to the procedures and requirements of Section
14 63-38c-202.
15 [(10)] (13) "Population" means the number of residents of the state as of July 1 of each
16 year as calculated by the Office of Planning and Budget according to the procedures and
17 requirements of Section 63-38c-202.
18 [(11)] (14) "Revenues" means the revenues of the state from every tax, penalty, receipt,
19 and other monetary exaction and interest connected with it that are recorded as unrestricted
20 revenue of the General Fund, Uniform School Fund, and Transportation Fund, except as
21 specifically exempted by this chapter.
22 [(12)] (15) "Security" means any bond, note, warrant, or other evidence of indebtedness,
23 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
24 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
25 Section 2. Section 63A-5-103 is amended to read:
26 63A-5-103. Board -- Powers.
27 (1) The State Building Board shall:
28 (a) in cooperation with state institutions, departments, commissions, and agencies, prepare
29 a master plan of structures built or contemplated;
30 (b) submit to the governor and the Legislature a comprehensive five-year building plan
31 for the state containing the information required by Subsection (2);

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1 (c) amend and keep current the five-year building program for submission to the governor
2 and subsequent legislatures;
3 (d) as a part of the long-range plan, recommend to the governor and Legislature any
4 changes in the law that are necessary to insure an effective, well-coordinated building program for
5 all state institutions;
6 (e) make rules necessary to discharge its duties and the duties of the Division of Facilities
7 Construction and Management by following the procedures and requirements of Title 63, Chapter
8 46a, Utah Administrative Rulemaking Act;
9 (f) with support from the Division of Facilities Construction and Management, establish
10 design criteria, standards, and procedures for the use of state agencies and institutions in the
11 planning for new state buildings and facilities including life-cycle costing, cost-effectiveness
12 studies, and other methods and procedures that demonstrate:
13 (i) the need for the building or facility;
14 (ii) the effectiveness of its design;
15 (iii) the efficiency of energy use; and
16 (iv) the usefulness of the building or facility over its lifetime;
17 (g) prepare and submit a yearly request to the governor and the Legislature for a
18 designated amount of square footage by type of space to be leased by the Division of Facilities
19 Construction and Management in that fiscal year; and
20 (h) assure the efficient use of all building space.
21 (2) In order to provide adequate information upon which the State Building Board may
22 make its recommendation under Subsection (1), any state agency requesting new full-time
23 employees for the next fiscal year shall report those anticipated requests to the building board at
24 least 90 days before the annual general session in which the request is made.
25 (3) (a) The State Building Board shall ensure that the five-year building plan required by
26 Subsection (1)(c) includes:
27 (i) a list that prioritizes construction of new buildings for all structures built or
28 contemplated based upon each agency's, department's, commission's, and institution's present and
29 future needs;
30 (ii) information, and space use data for all state-owned and leased facilities;
31 (iii) substantiating data to support the adequacy of any projected plans;

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1 (iv) a summary of all statewide contingency reserve and project reserve balances as of the
2 end of the most recent fiscal year; [and]
3 (v) a list of buildings that have completed a comprehensive facility evaluation by an
4 architect/engineer or are scheduled to have an evaluation;
5 (vi) for those buildings that have completed the evaluation, the estimated costs of needed
6 improvements; and
7 [(v)] (vii) for projects recommended in the first two years of the five-year building plan:
8 (A) detailed estimates of the cost of each project;
9 (B) the estimated cost to operate and maintain the building or facility on an annual basis;
10 (C) the estimated number of new agency full-time employees expected to be housed in the
11 building or facility;
12 (D) the estimated cost of new or expanded programs and personnel expected to be housed
13 in the building or facility;
14 (E) the estimated lifespan of the building with associated costs for major component
15 replacement over the life of the building; and
16 (F) the estimated cost of any required support facilities.
17 (b) The State Building Board may make rules prescribing the format for submitting the
18 information required by this subsection.
19 [(4) (a) As used in this section, "capital developments" means any:]
20 [(i) remodeling, site, or utility projects with a total cost of $1,000,000 or more;]
21 [(ii) addition of new space that will cost more than $100,000; or]
22 [(iii) land acquisition where an appropriation is requested.]
23 [(b) The State Building Board, on behalf of all state agencies, commissions, departments,
24 and institutions shall submit its capital development recommendations and priorities to the
25 Legislature for approval and prioritization.]
26 [(5) (a) As used in this section, "capital improvements" means any:]
27 [(i) remodeling, alteration, repair project with a total cost of less than $1,000,000; or]
28 [(ii) site and utility improvement with a total cost of less than $1,000,000.]
29 [(b) (i) The State Building Board, on behalf of all state agencies, commissions,
30 departments, and institutions shall by January 15 of each year, submit a list of anticipated capital
31 improvement requirements to the Legislature for review and approval.]

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1 [(ii) Unless otherwise directed by the Legislature, the building board shall prioritize capital
2 improvements from the list submitted to the Legislature up to the level of appropriation made by
3 the Legislature.]
4 [(6) (a) If, after approval of capital development and capital improvement priorities by the
5 Legislature under this section, emergencies arise that create unforeseen critical capital
6 improvement projects, the State Building Board may, notwithstanding the requirements of Title
7 63, Chapter 38, Budgetary Procedures Act, reallocate capital improvement funds to address those
8 projects.]
9 [(b) The board shall report any changes it makes in capital improvement allocations
10 approved by the Legislature to:]
11 [(i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and]
12 [(ii) the Legislature at its next annual general session.]
13 [(7) The Legislature may authorize:]
14 [(a) the total square feet to be occupied by each state agency; and]
15 [(b) the total square feet and total cost of lease space for each agency.]
16 [(8) (a) The Legislature may not fund the design or construction of any new capital
17 development projects, except to complete the funding of projects for which partial funding has
18 been previously provided, until the following funding requirement (including supplemental
19 funding) for capital improvements has been met:]
20 [(i) for fiscal year 1995, .5% of the replacement cost of existing state buildings;]
21 [(ii) for fiscal year 1996, .75% of the replacement cost of existing state buildings; and]
22 [(iii) for fiscal year 1997 and thereafter, .9% of the replacement cost of existing state
23 buildings.]
24 [(b) As used in this subsection, "replacement cost of existing state buildings" means the
25 replacement cost, as determined by the Division of Risk Management, of state buildings, excluding
26 auxiliary buildings as defined by the State Building Board.]
27 [(9) The board may adopt a rule allocating to institutions and agencies their proportionate
28 share of capital improvement funding. Such a rule should:]
29 [(a) reserve funds at Division of Facilities Construction and Management for emergency
30 projects; and]
31 [(b) allow the delegation of projects to some institutions and agencies with the requirement

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1 that a report of expenditures will be filed annually with the Division of Facilities Construction and
2 Management and appropriate governing bodies.]
3 [(10) It is the intent of the Legislature that in funding capital improvement requirements
4 under this section, that the General Fund be considered as a funding source for at least half of those
5 costs.]
6 Section 3. Section 63A-5-104 is enacted to read:
7 63A-5-104. Capital development and capital improvement process.
8 (1) As used in this section:
9 (a) "Capital developments" means any:
10 (i) remodeling, site, or utility projects with a total cost of $1,000,000 or more;
11 (ii) addition of new space that will cost more than $100,000; or
12 (iii) land acquisition where an appropriation is requested.
13 (b) "Capital improvements" means any:
14 (i) remodeling, alteration, or repair project with a total cost of less than $1,000,000; or
15 (ii) site and utility improvement with a total cost of less than $1,000,000.
16 (c) "Replacement cost of existing state buildings" means the replacement cost, as
17 determined by the Division of Risk Management, of state buildings, excluding auxiliary buildings
18 as defined by the State Building Board.
19 (2) The State Building Board, on behalf of all state agencies, commissions, departments,
20 and institutions shall submit its capital development recommendations and priorities to the
21 Legislature for approval and prioritization.
22 (3) (a) The State Building Board, on behalf of all state agencies, commissions,
23 departments, and institutions shall by January 15 of each year, submit a list of anticipated capital
24 improvement requirements to the Legislature for review and approval.
25 (b) Unless otherwise directed by the Legislature, the building board shall prioritize capital
26 improvements from the list submitted to the Legislature up to the level of appropriation made by
27 the Legislature.
28 (c) In prioritizing capital improvements, the building board shall consider the results of
29 facility evaluations completed by an architect/engineer as stipulated by the building board's
30 facilities maintenance standards.
31 (4) The Legislature may authorize:

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1 (a) the total square feet to be occupied by each state agency; and
2 (b) the total square feet and total cost of lease space for each agency.
3 (5) The Legislature may not fund the design or construction of any new capital
4 development projects, except to complete the funding of projects for which partial funding has
5 been previously provided, until the Legislature has appropriated .9% of the replacement cost of
6 existing state buildings to capital improvements.
7 (6) (a) If, after approval of capital development and capital improvement priorities by the
8 Legislature under this section, emergencies arise that create unforeseen critical capital
9 improvement projects, the State Building Board may, notwithstanding the requirements of Title
10 63, Chapter 38, Budgetary Procedures Act, reallocate capital improvement funds to address those
11 projects.
12 (b) The building board shall report any changes it makes in capital improvement
13 allocations approved by the Legislature to:
14 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
15 (ii) the Legislature at its next annual general session.
16 (7) (a) The State Building Board may adopt a rule allocating to institutions and agencies
17 their proportionate share of capital improvement funding.
18 (b) The building board shall ensure that the rule:
19 (i) reserves funds for the Division of Facilities Construction and Management for
20 emergency projects; and
21 (ii) allows the delegation of projects to some institutions and agencies with the
22 requirement that a report of expenditures will be filed annually with the Division of Facilities
23 Construction and Management and appropriate governing bodies.
24 (8) It is the intent of the Legislature that in funding capital improvement requirements
25 under this section the General Fund be considered as a funding source for at least half of those
26 costs.
27 Section 4. Section 63A-5-204 is amended to read:
28 63A-5-204. Specific powers and duties of director.
29 (1) The director shall:
30 (a) recommend rules to the executive director for the use and management of facilities and
31 grounds owned or occupied by the state for the use of its departments and agencies;

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1 (b) supervise and control the allocation of space, in accordance with legislative directive
2 through [the] annual appropriations [act] acts or other specific legislation, to the various
3 departments, commissions, institutions, and agencies in the capitol, the state office building, and
4 all other buildings or space owned, leased, or rented by or to the state, except as otherwise
5 provided by law;
6 (c) comply with the procedures and requirements of Title 63A, Chapter 5, Part 3, Division
7 of Facilities Construction and Management Leasing;
8 (d) acquire, as authorized by the Legislature through the appropriations act or other
9 specific legislation, and hold title to, in the name of the division, all real property, buildings,
10 fixtures, or appurtenances owned by the state or any of its agencies;
11 (e) recommend to the executive director rules to govern traffic flow and vehicle parking
12 on roadways and parking lots which surround the capitol and that are a part of Utah State Highway
13 293;
14 (f) adopt and use a common seal, of a form and design determined by the director, and of
15 which courts shall take judicial notice;
16 (g) file a description and impression of the seal with the Division of Archives;
17 (h) collect and maintain all deeds, abstracts of title, and all other documents evidencing
18 title to or interest in property belonging to the state or any of its departments, except institutions
19 of higher education and the School and Institutional Trust Lands Administration;
20 (i) report all properties acquired by the state, except those acquired by institutions of
21 higher education, to the director of the Division of Finance for inclusion in the state's financial
22 records; and
23 (j) take all other action necessary for carrying out the purposes of this chapter.
24 (2) (a) The director shall direct or delegate maintenance and operations, preventive
25 maintenance, and facilities inspection programs and activities for any department, commission,
26 institution, or agency, except state institutions of higher [or public] education.
27 [(b) For functions other than administration, the following agencies are also exempt from
28 the provisions of Subsection (2):]
29 [(i) the Department of Transportation;]
30 [(ii) the School and Institutional Trust Lands Administration;]
31 [(iii) the Department of Corrections;]

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1 [(iv) the Department of Natural Resources; and]
2 [(v) the Utah National Guard.]
3 (b) The director may choose to delegate responsibility for these functions only when the
4 director determines that:
5 (i) the department or agency has requested the responsibility;
6 (ii) the department or agency has the necessary resources and skills to comply with facility
7 maintenance standards approved by the State Building Board; and
8 (iii) the delegation would result in net cost savings to the state as a whole.
9 (c) State institutions of higher education are exempt from Division of Facilities
10 Construction and Management oversight.
11 (d) Each state institution of higher education shall comply with the facility maintenance
12 standards approved by the State Building Board.
13 (e) Agencies and institutions that are exempt from division oversight shall annually report
14 their compliance with the facility maintenance standards to the division in the format required by
15 the division.
16 (f) The division shall:
17 (i) prescribe a standard format for reporting compliance with the facility maintenance
18 standards;
19 (ii) report agency and institution compliance or noncompliance with the standards to the
20 Legislature; and
21 (iii) conduct periodic audits of exempt agencies and institutions to ensure that they are
22 complying with the standards.
23 (3) (a) In making any allocations of space under Subsection (1), the director shall:
24 (i) conduct studies to determine the actual needs of each department, commission,
25 institution, or agency; and
26 (ii) comply with the restrictions contained in Subsection (3).
27 (b) The supervision and control of the legislative area is reserved to the Legislature.
28 (c) The supervision and control of the judicial area is reserved to the judiciary for trial
29 courts only.
30 (d) The director may not supervise or control the allocation of space for entities in the
31 public and higher education systems.

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1 (4) The director may:
2 (a) hire or otherwise procure assistance and services, professional, skilled, or otherwise,
3 that are necessary to carry out the director's responsibilities, and may expend funds provided for
4 that purpose either through annual operating budget appropriations or from nonlapsing project
5 funds;
6 (b) sue and be sued in the name of the division; and
7 (c) hold, buy, lease, and acquire by exchange or otherwise, as authorized by the Legislature
8 through an appropriations act or other specific legislation, whatever real or personal property that
9 is necessary for the discharge of the director's duties.
10 (5) Notwithstanding the provisions of Subsection (1)(d), the following entities may hold
11 title to any real property, buildings, fixtures, and appurtenances held by them for purposes other
12 than administration that are under their control and management:
13 (a) the Office of Trust Administrator;
14 (b) the Department of Transportation;
15 (c) the Division of Forestry, Fire and State Lands;
16 (d) the Department of Natural Resources;
17 (e) the Utah National Guard;
18 (f) any area vocational center or other institution administered by the State Board of
19 Education; and
20 (g) any institution of higher education.
21 (6) Notwithstanding Subsections (1)(c) and (d), the School and Institutional Trust Lands
22 Administration may hold title to any real property, buildings, fixtures, and appurtenances held by
23 it that are under its control [and management].




Legislative Review Note
as of 9-19-96 11:31 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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Committee Note

The State and Local Affairs Interim Committee recommended this bill.

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